Franchising Your Austin Business
Franchising has become a very popular way to rapidly expand your business. The advantages to franchising your business are numerous.
Limited personal investment – Funds for expansion are provided by the franchisee.
Limited liability – With a properly structured franchising agreement you can avoid much of the liability of a wholly owned business.
Incentive – Franchisees have a greater incentive over direct employees to make the business successful.
Competition – Provides an arena that allows smaller companies to compete against larger firms.
Income potential – Income from royalties can be practically unlimited.
Should You Franchise Your Business?
If you have a business that has proven successful with a distinctive, duplicable business model and you would like to share your success with others while growing your business, franchising may be a worthwhile option.
There are many companies that will try to sell you on franchising, even though it may not be the right solution for you. The Law Office of Darin Siefkes is an Austin business law firm with years of experience dealing with franchising businesses. Our client list includes Curves International, one of the largest franchisors in the US. We will review your situation and give you an honest assessment of the cost, time and alternatives to your business expansion.
Steps to Buying a Franchise
Thinking of buying a franchise? Many of the advantages in owning and operating a franchise are identical to those in selling a franchise. You have instant name recognition, receive training and support and can follow a proven business plan. Since there is significant investment involved in purchasing most popular franchises, you need someone familiar with all the legal issues, the contracts and paperwork that you will be dealing with.
We can help you with your legal questions and assist in reviewing with you which franchise opportunity is best for you based on your abilities and particular situation. We can help you set your goals for owning your own business franchise and determine the first critical steps you should take to insure your long term success. Agreeing to become a franchisee is a big step and you should take that step with an attorney who has represented both large franchisors and franchisees.
Franchising Law and Legal Issues
Buying and selling a franchise are governed by Texas state and federal standards. Meeting these legal obligations is a critical first step in the franchising process. If becoming a franchisor is the path to take, we will prepare the Franchise Disclosure Document that you will be legally obligated to provide to prospective franchisees, as well as the standard form of franchise agreement and other contracts and materials to present to potential buyers. In addition, we will assist with your registration of the franchise.
If you do not currently have a strong marketable trademark, you will need to acquire one and register it for federal trademark protection. You will want to consider what types of Trademark and Copyright protection you will need. This is an area of primary importance as you start your new franchise system to ensure protection of your business name, logos, and business system. The type of Business Entity (Corporation, LLC, Partnership) you choose is also an important consideration to resolve.
If you are buying a franchise, we can help you avoid the legal pitfalls that many hopeful franchise business owners face. There are critical things to look for before you select and finalize your purchase.
Be aware that many of the advertised “Franchise Brokers” may be working for the franchisor, or may be working on a commission basis. You cannot be assured that they will work towards your best interests. We can guide you through the important elements in your selection. Since we have experience representing both franchisors and franchisees, we are able to provide client driven legal services for you whatever your intentions may be in obtaining or growing a business.
Contact Us to arrange for a no obligation assessment of your particular situation.